01:59 PM EDT, 05/06/2025 (MT Newswires) -- Tech stocks declined Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) shedding 0.8% and the SPDR S&P Semiconductor ETF (XSD) falling 1.7%.

The Philadelphia Semiconductor index dropped 1.2%.

In corporate news, Alphabet's (GOOGL) Google ( GOOG ) is facing a demand from the US Department of Justice to divest its ad technology business, Reuters reported. Alphabet shed 0.5%.

Palantir ( PLTR ) raised its full-year guidance as it recorded Q1 revenue above market expectations, though earnings were in line with estimates, while the software maker issued an upbeat sales outlook for the ongoing three-month period. Its shares were falling 13%.

Microsoft ( MSFT ) is the main investor still holding out on approving OpenAI's proposed plan to restructure its for-profit division despite ongoing negotiations, Bloomberg reported. Separately, OpenAI has agreed to buy AI-assisted coding tool Windsurf for roughly $3 billion, Bloomberg reported. Microsoft ( MSFT ) shares were down 0.3%.